Hi all, need a bit of your help
I just got a DRP Reinvestment notice from Cambridge. However, the issue price for each share is higher than the current price for Cambridge.
Will the issue price change to account for this? Or should I just not bother with this round?
Thanks
Is the question directly related to Cambridge Industrial Trust in SGX?
Regards
Moderator
(13-08-2015, 10:35 AM)CityFarmer Wrote: [ -> ]Is the question directly related to Cambridge Industrial Trust in SGX?
Regards
Moderator
Not really. The Cambridge Industrial Trust is an example. Question was about DRP in general.
From what I know, generally the issue price is fixed, so, it makes more sense to just buy it from the market.
However, if you factor in buying cost, for small holdings, it makes more sense to obtain through DRP.
However, for large holdings, it makes more sense to buy from market
Generally for DRP, unless u are buying off custodian operator (eg Stdchrt), the minimum market purchase costs of $25++ will usually outweigh the DRP pricing difference. Exception is if you really own a lot of shares, if the share price difference is too large or if u are using custodian. The issue price is fixed. Of course, you can always give DRP a miss.
I had this same academic exercise recently and decided against DRP for this quarter.
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